Finance

UAE Dirham Strengthens vs PKR on July 31, 2025

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On July 31, 2025, the United Arab Emirates Dirham (AED) rose against the Pakistani Rupee (PKR), reaching an interbank rate of Rs77.03–77.16 and an open market rate of Rs77.65–77.80, per posts on X by @RehmanEnterpris. This uptick strengthens the economic ties between Pakistan and the UAE, amplifying remittance values for 1.6 million Pakistani expatriates, who sent $717.2 million in June 2025, making the UAE Pakistan’s second-largest remittance source, according to the State Bank of Pakistan (SBP).

The AED’s climb, from Rs76.984 to Rs76.994 in the open market, reflects a 0.031% daily change, driven by robust remittance inflows and stable global oil prices, as reported by Sarmaaya.pk. Pakistan’s fiscal year 2024-25 saw remittances soar by 26.6% to $38.3 billion, with the UAE contributing significantly, per SBP data. The strengthened Dirham enhances the purchasing power of remittances, supporting Pakistani households amid economic pressures, as noted by Finance Minister Muhammad Aurangzeb, who stated, “A stronger rupee and remittances stabilize our economy,” in a Geo.tv interview.

Despite a weekly decline of 0.466%, with the AED peaking at Rs77.457 on July 30, the currency’s performance remains resilient, underpinned by Pakistan’s improved foreign exchange reserves, which reached $15.1 billion in July 2025, per Pakistan Observer. Currency dealers cited on Wise.com reported the AED’s yearly high of Rs77.7964 on July 14, highlighting its role in Pakistan’s trade dynamics, particularly for oil imports. The SBP’s tight monetary policy has bolstered the PKR, mitigating sharper AED gains, as per Profit by Pakistan Today.

Looking ahead, analysts expect the AED-PKR rate to stabilize between Rs76.90 and Rs77.50 in August, barring global disruptions, according to Pakistan Observer. Posts on X, like those by @ARYNEWSOFFICIAL, underscored public interest in the rate’s impact on remittances. This economic linkage reinforces Pakistan’s reliance on its diaspora’s contributions, driving financial stability and growth.

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